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Kuwait Financing Reaches Five-Year Accord to Restructure $495 Million Debt

Kuwait Finance & Investment Co., an investment and asset management firm, reached an accord with its lenders to restructure 145 million dinars ($495 million) in debt as Middle Eastern companies renegotiate loan terms after the global credit crisis.

Kuwait Finance agreed on a five-year debt restructuring agreement with all its 22 local and international lenders, the company said in an e-mailed statement today. The debt, restructured with the help of lead managers National Bank of Kuwait and Ahli United Bank, is scheduled to be paid in four parts with the last settled on Dec. 31, 2014, it said.

Investment Dar Co., the Kuwait-based owner of half of Aston Martin Lagonda Ltd., started talks last year to restructure its debt after the credit crisis forced the government to guarantee all local bank deposits in 2008. Global Investment House in December signed an agreement with its 53 creditors to restructure about $1.73 billion of debt. Dubai World, one of Dubai’s three main state-owned business groups, on May 20 reached an agreement with a group of creditors to restructure $23.5 billion of liabilities.

Kuwait Finance will soon conclude an organization restructuring and implement a new business model, according to the statement.

“We have finalized a complete balance sheet de-leveraging that places KFIC on the strongest financial footing,” it said. “Looking to the rest of the year, we will continue to bolster our balance sheet and expect our performance to gradually pick up with modest bottom-line earnings in line with the prevailing market conditions.”

To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

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